Outlook and Closing Observations & Question and Answer Session
The comments, opinions, and predictions about any particular security, the economy, and "the market" made by Legg Mason, Inc., Legg Mason Funds Management, Inc., Legg Mason Wood Walker, Inc., and its affiliates are based on their own analysis and any forward predictions that may result from that analysis are not representative of actual future performance of any security, the economy, or "the market".
The S&P 500 is an unmanaged index of common
stock prices that includes reinvestment of dividends and capital gain distributions and is generally considered representative of the U.S. stock market. It is not possible to invest in an index.
Past performance does not guarantee future results. The inception date of the Value Trust is April 16, 1982. The 1-, 5-, and 10-year performance of the Value Trust as of 9/30/03 was 43.02%, 8.20%, and 16.50% respectively. The inception date of the Opportunity Trust is December 30, 1999. The 1-, 3-year, and since inception performance of the Opportunity Trust as of 9/30/03 was 80.88%, 5.45%, and 6.96% respectively. The investment return and principal value of the fund will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. Calculations assume reinvestment of dividends and capital gain distributions. Performance would have been lower if fees had not been waived in various periods.
The percentage of holdings in the Value Trust of the securities mentioned as of 9/30/03 were as follows: Amazon.com, Inc. 9.7%, AES Corp 3.2%, Nextel Communications Inc 7.4%, General Electric Company 0.0%, Merck & Co., Inc. 0.0%, Pfizer Inc 0.0%, American International Group, Inc. 0.0%, Mattel, Inc. 0.0%, Dell Inc 0.0%, Cisco Systems, Inc. 0.0%, Yahoo! Inc. 0.0%; eBay Inc. 0.7%, InteractiveCorp 4.4%, Wal-Mart Stores Inc. 0.0%, Microsoft Corporation 0.0%, Exxon Mobile Corp 0.0%, Eli Lilly and Company 0.0%, Eastman Kodak Co.2.4%; Time Warner Inc 2.5%. Portfolio holdings are subject to change. Please see the most recent shareholders' report for more information.
The percentage of holdings in the Opportunity Trust of the securities mentioned as of 9/30/03 were as follows: Amazon.com, Inc. 10.4%. AES Corp 2.5%, Nextel Communications Inc 0.0%, General Electric Company 0.0%, Merck & Co., Inc. 0.0%, Pfizer Inc 0.0%, American International Group, Inc. 0.0%, Mattel, Inc. 0.0%, Dell Inc 0.0%, Cisco Systems, Inc. 0.0%, Yahoo! Inc. 0.0%, eBay Inc. 0.0%, InteractiveCorp 0.0%, Wal-Mart Stores Inc. 0.0%, Microsoft Corporation 0.0%, Exxon Mobile Corp 0.0%, Eli Lilly and Company 0.0%, Eastman Kodak Co. 0.0%; Time Warner Inc 0.0%. Portfolio holdings are subject to change. Please see the most recent shareholders' report for more information.
There are special considerations associated with investments in shares of the Opportunity Trust, which is more volatile and risky than some other forms of investment. These types of Funds typically have a high portfolio turnover that could increase transaction costs and cause short–term capital gains to be realized. The investment style is less restricted and the manage may take short positions which can be risky. A non-diversified Fund entails greater price risk than a diversified Fund because a higher percentage of investments among fewer issuers may result in greater fluctuation in the total market value of the Fund's portfolio. The international investments are subject to currency fluctuations, social, economic and political risks. This Fund also invests in small companies, which may involve a higher risk than a Fund that invests in larger, more established companies. Small companies may have limited product lines, markets or financial resources.
For a free prospectus containing more complete information, including charges and expenses on any Legg Mason fund, contact your Legg Mason Financial Advisor, call 1-800-577-8589, or visit www.leggmasonfunds.com. Please read the prospectus carefully before investing or sending money.
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